‘Let Landbank handle salary loan deductions of teachers’

1-Ang Edukasyon Party-list Rep. Salvador Belaro, Jr. has proposed that Landbank of the Philippines instead of the Department of Education (DepEd) handle the salary loan deductions of public school teachers.

“DepEd administrative personnel need not be burdened with the extraneous task of salary deductions of personal loans the teachers get from lenders. This salary deduction function is a nuisance distraction to DepEd staff because it takes time away from doing their primary roles of attending to the official concerns of DepEd,” said Belaro on Friday.

“I ask the DepEd to enter into a memorandum of agreement (MOA) with its depository bank, the Land Bank of the Philippines. With the MOA, the DepEd can transfer to Landbank all the salary deduction processing roles and functions. In the agreement, DepEd can also have Landbank conduct the needed financial literacy and advising the teachers need to get their finances in order,” Belaro said.

“Dealing with the private lending institutions is not a core function nor competency of the DepEd,” said the House Assistant Majority Leader. “That would be more in the expertise of Landbank.”

The arrangement would benefit Landbank by gaining a new business and service charges that necessarily come with being the processor of salary deductions.

Landbank can also offer salary loans to the teachers at rates that are equal to or preferably lower than those of private lenders, he said.

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CONCEPTNEWSCENTRAL (CNC) is a news organization established by Concept Group Inc., a corporation operating under the laws of the Republic of the Philippines, with business address located at 3450 Concept Building, Florida Street, Makati City, Metropolitan Manila, the Philippines. Read more...